Pepco Group LFL revenue dips 4.3% in Q3
Poundland saw a 6.9% LFL decline due to challenges related to the introduction of new Pepco-sourced clothing and general merchandise ranges
Pepco Group, owner of Poundland, Dealz and Pepco, has reported a 4.3% decline in group like-for-like revenues for its third financial quarter ended 30 June.
Poundland saw a 6.9% LFL decline due to challenges related to the introduction of new Pepco-sourced clothing and general merchandise ranges.
Pepco’s LFL revenues were down 2.7% reflecting the earlier timing of Easter, slower-selling older stock that is being traded out through markdown, and supply chain issues impacting availability of new summer stock. Dealz LFLrevenues were also down 7.3%.
However, the company also reported an 8% revenue increase to €1.4bn (£1.1bn) in Q3 and a 10% revenue increase to €4.6bn (£3.8bn) for nine months of the year to date.
During the nine months to date, the group opened 326 new shops, with 37 during Q3.
Pepco has said to continue to make “tangible” strategic progress towards the objectives set out last October including rebuilding profitability in its core Pepco CEE business, with store profitability back at pre-Covid levels, and delivering stronger cost focus and higher cash generation through capital investment.
Commenting on the results, Andy Bond, executive chair of Pepco Group, said: “Group like-for-like revenues in Q3 were below our expectations, partly due to macro factors, such as ongoing supply chain disruption, and company-specific issues, including slower-selling older stock which is being removed through markdown, as well as the transition to Pepco-sourced clothing and general merchandise in Poundland and Dealz.
“We are actively improving the availability and breadth of our ranges, and expect to benefit from these actions in the new financial year.”
He added: “Looking ahead, the group remains confident of delivering underlying EBITDA of around €900m (£ 758m) this financial year and exiting the year with an improved trajectory in LFL sales in our core Pepco business. Our strong customer proposition and market-leading pricing leaves us well placed for future success as Europe’s leading variety discount retailer.”
